C I T KOTA vs. M/S OVERSEAS CAPITAL LTD

ITA/844/2008HC RajasthanRJHC02039560200825 July 2023Bench: AUGUSTINE GEORGE MASIH,SAMEER JAIN2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court accepted the Revenue's application for recall of the order dated 27.01.2017, acknowledging the mistake in assuming the appeal was under the Income Tax Act when it was under the Interest Tax Act, 1974. The order was recalled, and the appeal was restored. Upon considering the appeal, the Court noted that the tax effect was a meager amount of ₹ 61,591/-. Due to this small pecuniary value, the Court was not inclined to interfere in the matter. The appeal was dismissed, with the question of law left open for consideration in an appropriate future case. No specific finding was given on the merits of the appeal itself, other than the decision to dismiss it based on the tax effect.

What were the facts?

The Commissioner of Income Tax, Kota (Revenue) filed an application (D.B. Civil Miscellaneous Application No. 233/2017) seeking recall of an order dated 27.01.2017. The Revenue contended that the earlier order dismissing the tax appeal was passed under the assumption that it pertained to the Income Tax Act, 1961, whereas the appeal was actually filed under the Interest Tax Act, 1974. The High Court accepted the reasons for recall and recalled the order dated 27.01.2017, restoring the appeal to its original number. Subsequently, the appeal (D.B. Income Tax Appeal No.844/2008) was taken up for consideration. The tax effect involved in the appeal was ₹ 61,591/-.

What were the issues?

1. Whether the High Court should recall its previous order dismissing the appeal, given that the appeal was filed under the Interest Tax Act, 1974, and not the Income Tax Act, 1961, as mistakenly assumed. Contentions: Assessee: Not recorded. Revenue: The order dated 27.01.2017 was passed under a mistaken premise regarding the governing legislation, necessitating its recall. 2. Whether the appeal should be entertained and decided on merits, considering the tax effect involved. Contentions: Assessee: Not recorded. Revenue: The tax effect is a meager amount of ₹ 61,591/-, and the question of law, as framed, should be kept open for consideration in an appropriate case.

AI-generated summary — verify with the full judgment below

[2023:RJ-JP:15132-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Miscellaneous Application No. 233/2017 The Commissioner Of Income Tax, Kota. ----Petitioner Versus M/s. Overseas Capital Ltd. Now Known M/s. Zyden Zenetic Ltd., 143, Deepshree Building, Gumanpura, Kota. ----Respondent For Petitioner(s) : Mr. Shantanu Sharma with Ms. Bhavana Ladha HON'BLE THE CHIEF JUSTICE AUGUSTINE GEORGE MASIH HON'BLE MR. JUSTICE SAMEER JAIN Order 25/07/2023 D.B. Civil Miscellaneous Application No. 233/2017:- 1. Prayer in this application is for recall of the order dated 27.01.2017, whereby the tax appeal was dismissed on the assumption that the same was under the Income Tax Act, whereas it is under the Interest Tax Act, 1974. 2. On considering the reasons assigned for recall of order dated 27.01.2017, we accept the prayer made in this application and recall the order, referred to above, restoring the appeal to its original number. 3. At the request made by learned counsel for the applicant- appellant, the appeal is taken up for consideration. D.B. Income Tax Appeal No.844/2008:- 1. It has not been refuted that the tax effect involved in the appeal is a meager amount of ₹ 61,591/-. Keeping the question of law, as framed, open for consideration in an appropriate case, we

[2023:RJ-JP:15132-DB] (2 of 2) [CMAP-233/2017] are not inclined to interfere in the matter because of the pecuniary amount in issue. 2. The appeal, therefore, stands dismissed by keeping the question of law open for consideration. 3. A copy of this order be placed in the file of D.B. Income Tax Appeal No.844/2008. (SAMEER JAIN),J (AUGUSTINE GEORGE MASIH),CJ KAMLESH KUMAR/RAJAT/7

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